Another month has passed by, and it’s time for me to post an article on my favorite subject: dividend income. The reason why I love to post articles on dividend income is because it’s pure numbers. It’s hard to argue the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time and get closer to covering one’s expenses.
Although October’s dividend tally wasn’t quite as impressive as September’s record breaking haul, it’s still a marked improvement upon what I was able to achieve during the same month last year. And that’s really what these updates are designed to show: constant improvement year after year. And the ease of improvement is really what allows dividend growth investing to shine; it’s easy to improve on dividend income totals when you’re reinvesting ever higher dividends back into investments which will yield, well, ever higher dividends. The organic growth of the dividends themselves via the underlying companies raising the quarterly payouts is icing on what amounts to a cake of reinvestment. It’s hard not to be gushing cash over the long haul if you’re following this strategy.
I hope these monthly dividend income reports provide inspiration for any investors out there that are just starting out. It’s easy to see these payments rising month after month and it shows that it’s possible to one day pay for monthly expenses with dividends, which would provide an investor opportunities and freedom to pursue other interests than full-time work. Without further ado:
- The Coca-Cola Company (KO) – $22.40
- Illinois Tool Works Inc. (ITW) – $14.70
- Altria Group Inc. (MO) – $38.40
- Philip Morris International Inc. (PM) – $94.00
- American Realty Cap. Prop. Inc. (ARCP) – $7.58
- Realty Income Corp. (O) – $12.73
- Medtronic, Inc. (MDT) – $10.36
- Sysco Corporation (SYY) – $8.12
- The Bank of Nova Scotia (BNS) – $12.61
- Raytheon Company (RTN) – $13.75
Total dividends received during the month of October: $247.95
Solid month, and solid progress for my Freedom Fund. This represents real cash money I didn’t have to go to work and earn, and this was capital I was able to reinvest with almost no effort on my part. This $247 will surely exponentially grow over the decades as it buys income-producing assets today which will themselves eventually buy even more income-producing assets in the future. It’s a little mutating, multiplying army of dividends that grows all by itself. Truly the gift that keeps on giving!
This was a big change from the $154.92 I earned in October of last year. That’s an improvement on the order of 60.1%. I’ll gladly take it.
I was able to cover over 13% of my expenses over the month of October via passive dividend income. A far cry from the 100%+ number I’ll need to consider myself financially independent, but progress is made every single day. It’s all about staying consistent and persistent.
My goal is to receive $3,500 in dividends during the year of 2013. With October now recorded in the books, I can see that I’ve received $3,135.27 in dividends so far this year. I’m quite confident that I’m going to exceed my goal by a healthy margin by the end of 2013. I’m very excited to be in the position to smash through passive income goals like this.
I’ll update my dividend income page to reflect October’s dividends.
Full Disclosure: Long all aforementioned securities.
How was your October? A fantastic month of dividends?
Thanks for reading.
Photo Credit: sscreation’s/FreeDigitalPhotos.net
Edit: Corrected improvement figure.